Rehab Financing for Fix and Flip in Columbus, Ohio

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Rehab Financing for Fix and Flip in Columbus, Ohio

Edward Aaron Itayim
Columbus, OH · Member since 2018 · 13 posts · 11 votes

Hello all, 

Over the last couple months, I have been getting a strategy together and seeing what would be the best fit for me in real estate. I am ready to get going but I had some financing questions. I am in the Columbus, Ohio area and interested in fix and flip single family homes. Are there lenders in our area that loan for projects like this? What are some likely terms? Can you get the cost of rehab financed as well? I know I could go through a bank, but I have not found any that would do cost of renovation as well? I thought I saw a company that would do 85% plus 100% of the renovation budget, but it was an out of state company. Just wondering if anyone had any luck around here. I have a modest budget and imagine there is a minimum loan amount. Thank you for any help. 

Ed

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Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
7y
Originally posted by @Edward Aaron Itayim:
@Robert Ellis. Thank you. I am a local attorney and run my own practice with my two partners. I don’t think the income verification will too much of an issue and my budget is modest around $100k for the property. I have a partner I am going in with. Both of us have good credit etc. Do you know what terms are generally for hard money loans in our area? Private lender? I don’t think with my budget and the homes I am looking g at conventional financing will be an option. Thanks again!

 For just interest expect to pay around 16% and for hard money probably 3 points and 12-13%. Check out COREE there are always hard money guys but they can be as high as 5 points which i'd never pay in columbus 

[email protected]786-494-6766
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  • Karl Hinkel
    Specialist · Columbus, OH · Member since 2018 · 117 posts · 35 votes
    7y
    Originally posted by @Edward Aaron Itayim:

    Hello all, 

    Over the last couple months, I have been getting a strategy together and seeing what would be the best fit for me in real estate. I am ready to get going but I had some financing questions. I am in the Columbus, Ohio area and interested in fix and flip single family homes. Are there lenders in our area that loan for projects like this? What are some likely terms? Can you get the cost of rehab financed as well? I know I could go through a bank, but I have not found any that would do cost of renovation as well? I thought I saw a company that would do 85% plus 100% of the renovation budget, but it was an out of state company. Just wondering if anyone had any luck around here. I have a modest budget and imagine there is a minimum loan amount. Thank you for any help. 

    Ed

     There are definitely hard money lenders throughout the state that can help. I have worked closely with a few in the past. It may be difficult to get a 100% financing with out experience. Not sure what your experience is, but having a portfolio of work / resume to share with a lender about your experience and expertise will give you more opportunity to secure financing. 

    0Reply
  • Eric Veronica
    Lender · Cleveland, OH · Member since 2011 · 588 posts · 438 votes
    7y

    @Edward Aaron Itayim are you planning on doing the financing yourself or are you contracting with a GC?

    0Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    7y
    Originally posted by @Edward Aaron Itayim:

    Hello all, 

    Over the last couple months, I have been getting a strategy together and seeing what would be the best fit for me in real estate. I am ready to get going but I had some financing questions. I am in the Columbus, Ohio area and interested in fix and flip single family homes. Are there lenders in our area that loan for projects like this? What are some likely terms? Can you get the cost of rehab financed as well? I know I could go through a bank, but I have not found any that would do cost of renovation as well? I thought I saw a company that would do 85% plus 100% of the renovation budget, but it was an out of state company. Just wondering if anyone had any luck around here. I have a modest budget and imagine there is a minimum loan amount. Thank you for any help. 

    Ed

     like @Karl Hinkel it's possible but rare. we've funded a deal with these types of terms but i've been in RE for 4 years with plenty of income verification. if you don't have a good w2 job, cash reserves, or the deal isn't that great they will pass on it. Make sure you are ready as well because if you go over budget those cash reserves are going to be key, a lot of columbus homes older than 1950s never stay on budget lol 

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    1Reply
  • David Yoder
    Developer · Columbus, OH · Member since 2008 · 117 posts · 63 votes
    7y

    I've been working with Josh Crumley @ phxloans and they loan more based on the viability of the deal than anything else.  Tell him that I sent you.  Good luck.  If he doesn't work inbox me.

    1Reply
  • Edward Aaron Itayim
    OP
    Columbus, OH · Member since 2018 · 13 posts · 11 votes
    7y

    Thank you. I will definitley send him an email. I appreciate it.

    1Reply
  • Edward Aaron Itayim
    OP
    Columbus, OH · Member since 2018 · 13 posts · 11 votes
    7y
    @Robert Ellis. Thank you. I am a local attorney and run my own practice with my two partners. I don’t think the income verification will too much of an issue and my budget is modest around $100k for the property. I have a partner I am going in with. Both of us have good credit etc. Do you know what terms are generally for hard money loans in our area? Private lender? I don’t think with my budget and the homes I am looking g at conventional financing will be an option. Thanks again!
    0Reply
  • Eric P.
    New York City, NY · Member since 2016 · 470 posts · 348 votes
    7y

    @Edward Aaron Itayim Are you operating as an LLC or not? That decision greatly affects your financing options, lending terms, etc

    1Reply
  • Edward Aaron Itayim
    OP
    Columbus, OH · Member since 2018 · 13 posts · 11 votes
    7y

    Thank you Eric. Yes, I will be operating as an LLC.

    0Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    7y
    Originally posted by @Edward Aaron Itayim:
    @Robert Ellis. Thank you. I am a local attorney and run my own practice with my two partners. I don’t think the income verification will too much of an issue and my budget is modest around $100k for the property. I have a partner I am going in with. Both of us have good credit etc. Do you know what terms are generally for hard money loans in our area? Private lender? I don’t think with my budget and the homes I am looking g at conventional financing will be an option. Thanks again!

     For just interest expect to pay around 16% and for hard money probably 3 points and 12-13%. Check out COREE there are always hard money guys but they can be as high as 5 points which i'd never pay in columbus 

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    2Reply
  • Edward Aaron Itayim
    OP
    Columbus, OH · Member since 2018 · 13 posts · 11 votes
    7y

    I will keep that in mind. Thank you Robert. A lot of information to sort through. I appreciate the advice.

    0Reply
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